Pip value calculation ?

np90

Newbie
1 0
Afternoon All,

Not sure if this is a complete rookie question, most likely is, but how do i calculate the value of a pip, not just in forex but for example ive got a demo account ive bought .50 of a lot of sugar

apparently googling for this it says each pip is 0.0001 etc of a specific lot size so assuming a 100,000 lot a pip would be 0.00001 ?

sugar one lot is 10,000 ive bought 0.50 of a lot so 5000 - on mt4 each pip is coming in at £38.95 ? i dont get how...

could someone please clarify, one thing im struggling with,

thanks
 

hatemypips

Well-known member
496 36
Afternoon All,

Not sure if this is a complete rookie question, most likely is, but how do i calculate the value of a pip, not just in forex but for example ive got a demo account ive bought .50 of a lot of sugar

apparently googling for this it says each pip is 0.0001 etc of a specific lot size so assuming a 100,000 lot a pip would be 0.00001 ?

sugar one lot is 10,000 ive bought 0.50 of a lot so 5000 - on mt4 each pip is coming in at £38.95 ? i dont get how...

could someone please clarify, one thing im struggling with,

thanks
One lot of sugar is 10000 of what? Pound, kg, tonnes? Calculate the price of one unit for example 1kg of sugar multiply it by quantity you will get one lot of sugar expressed in money. Then multiply it by 0.0001 to get the pip value.
 

Pat494

Legendary member
13,849 1,401
I think I am right in saying MT4 and MT5 calculate their stop loss and take profit in points value.
Points value/10 = pip value.
 

hatemypips

Well-known member
496 36
I think I am right in saying MT4 and MT5 calculate their stop loss and take profit in points value.
Points value/10 = pip value.
Pip value depends on the lot size, we can't calculate pip value using only the data you provided.
 

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